Consider the following Ricardian model with 2 countries and 2 goods. The table below providesinformation on the size of countries' labor force and their productivity in producing each good.IndiaChina60Labor Supply350workers workersJuice3 workers 7 workersTea2 workers 5 workersWhat is the pattern of trade? ExplainWhat is the maximum free trade price of tea in terms of juice for free trade to be profitable?Explain.Edit ViewInsert Format Tools Table12pt v ParagraphI UU Av 2v T?v Consider the following Ricardian model with 2 countries and 2 goods. The table below providesinformation on the size of countries' labor force and their productivity in producing each good.IndiaChina35060Labor Supplyworkers workersJuice3 workers 7 workersTea2 workers 5 workersIf you draw the Production Possibility for China with Juice on the horizontal axis, what is theslope of the PPF and what is the economic interpretation of the slope?Edit View Insert Format Tools Table12pt vParagraph vB I U A ev T? v

1) Since, the opportunity cost of 1 unit of juice is less in China and the opportunity cost of 1…

Consider the following Ricardian model with 2 countries and 2 goods. The table below provides information on the size of countries' labor force and their productivity in producing each good. India China 60 Labor Supply 350 workers workers Juice 3 workers 7 workers Tea 2 workers 5 workers What is the pattern of trade? Explain What is the maximum free trade price of tea in terms of juice for free trade to be profitable? Explain.

Consider the following Ricardian model with 2 countries and 2 goods. The table below provides information on the size of countries' labor force and their productivity in producing each good. India China 60 Labor Supply 350 workers workers Juice 3 workers 7 workers Tea 2 workers 5 workers What is the pattern of trade? Explain What is the maximum free trade price of tea in terms of juice for free trade to be profitable? Explain.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter18: International Trade And Comparative Advantage

Section: Chapter Questions

Problem 2TY

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